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RESOLUTION No. 08/1999/NQ-CP OF JULY 9, 1999 ON MEASURES TO ADMINISTER THE IMPLEMENTATION OF THE TASKS IN THE SECOND HALF-YEAR OF 1999

On July 5 and 6, 1999 the Government at its June regular session decided on the following measures to concentrate its guidance on administering the implementation of the plan in the second half-year of 1999:

A. IMPLEMENTATION OF THE TASKS IN THE FIRST HALF-YEAR PLAN

In the first six months of 1999 the Government has concentrated its homogeneous guidance on the realization of the key tasks in the working program of the Government: investing in the agriculture and rural areas sector; removing the hindrances in production and business, creating favorable conditions for the population and enterprises to invest in developing production and business; carrying out measures for demand pull and developing the internal resources; creating better conditions for direct foreign investment; promoting reforms and effectively performing financial and monetary management; stepping up relations with foreign countries; carrying out the program for hunger eradication and poverty alleviation, concentrating the infrastructure construction fund on the 1,000 communes still meeting with great difficulties; fighting to prevent and combat criminal offences and social vices, and continuing the high drive of prevention and combat against drug abuse...

In its guidance of the performance, the Government has put out in time correct decisions to concentrate guidance on key questions and areas according to the working program already set out at the beginning of the year with the highest determination to achieve the tasks set in the socio-economic development plan. Thanks to this, in the context of many difficulties and trials, the socio-economic situation in the first six months of 1999 continued to stabilize, the economy continued to grow; in the cultural and social fields, progress has also been recorded; political security and public order and safety have been firmly maintained; international relations continued to expand.

However, many weaknesses have emerged in the socio-economic situation of which the most prominent are the lower GDP growth rate compared with the same period of many previous years, the slow increase of industrial production, the rising volume of goods in stock, the less buoyant domestic market; the lack of positive changes in investment in capital construction, the slow deployment of State investments, the sharp fall of foreign direct investments, the continued slack of investment from enterprises and the population; the continued rise of unemployment and under-employment; the continued and complicated development of a number of social vices especially drug abuse and prostitution; the quite serious violation of order, discipline and law in social life.

B. MEASURES TO ADMINISTER THE IMPLEMENTATION OF THE TASKS IN THE SECOND HALF-YEAR OF 1999

In the second half-year of 1999, besides continuing to direct the implementation of the measures already laid down, the Government shall concentrate its guidance on the realization of the following seven groups of major solutions:

I. MEASURES FOR INVESTMENT AND CONSUMPTION DEMAND PULL AIMED

AT DEVELOPING THE INTERNAL RESOURCES AND PROMOTING THE DEVELOPMENT OF PRODUCTION

AND BUSINESS

1. To concentrate guidance on realizing measures to mobilize and disburse capital sources in order to ensure the total investment for capital construction set at the beginning of the year.

a/ Right in July 1999, the ministries, branches and localities should revise and revaluate the whole of the deployment of capital construction projects with budget capital in 1999; for those projects which are under way, procedures must be urgently completed for payment and advance provisional allocations for the volume that has been achieved as prescribed.

The Ministry of Finance shall make advance payment for 40-50% of the value of the remaining volume of the 1999 plan in order to speed up the tempo of construction.

b/ For the shortfall in the payment for the volume of capital construction in 1996-1997, the Prime Minister has issued the decision on payment and has notified the ministries, branches and localities thereof. The ministries, branches and localities should urgently complete the dossiers in order to make the final payment in the third quarter of 1999.

c/ For the projects using the Official Development Assistance (ODA) sources the ministries, branches and localities must concentrate efforts on unraveling difficulties and sticking points and take measures to promote the tempo of disbursement as planned. First of all, it is necessary to concentrate close guidance and synchronize various measures, economic, administrative, popularization and education in order to settle well the question of compensation for the construction land space. In July 1999 the Ministry of Finance shall assume the main responsibility and submit to the Prime Minister the project of handling the tax policy with regard to the ODA projects.

d/ With regard to investment credits, the Ministry of Finance and the State Bank shall direct the lending organizations to urgently mobilize 7,400 billion VND for lending according to the targets stipulated in Decision No. 146/1999/QD-TTg of July 1, 1999 of the Prime Minister. The ministries, branches and localities should exert good guidance for the projects of borrowing investment fund and revise all the projects of borrowing investment credits. Those projects which have proved effective and are capable of capital retrieval should be promptly examined and ratified on schedule, and an end must be put to the situation where "capital is waiting for project."

e/ The State Bank shall direct the commercial banks to set priorities of lending to the economic sectors in the domains of raising shrimp for export, planting industrial trees and fruit trees, afforestation, processing agricultural, forestry and aquatic products, at reasonable interest rates. It is necessary to closely monitor the borrowers in order to promptly remove intricacies in procedures and create favorable conditions for the borrowing. The State Bank should study in order to expand soon the loans to the peasant households according to the need in production capital for each trade and branch, change the regulations on procedures of borrowing with mortgages on the following principle: a farmer household that has not yet been issued with the certificate of land use right and that now needs to borrow must be certified by the commune People�s Committee that the land area which is being used by that household is not subject to any dispute.

f/ With regard to foreign direct investment, it is necessary to direct the good implementation of Decision No. 53/1999/QD-TTg of March 26, 1999 of the Prime Minister on a number of measures to promote foreign direct investment. The Ministry of Planning and Investment shall assume the main responsibility and together with the related ministries and branches monitor the implementation and propose measures to continue removing the hindrances and submit them to the Prime Minister, thus creating favorable conditions for the on-going projects which are operating in production and business, with a view to limiting to the minimum the fall in foreign direct investments. In August 1999 the Ministry of Planning and Investment shall submit to the Prime Minister the project on the norms allowing the joint venture enterprises to be transformed into 100% foreign-invested enterprises and undertake new investments along this mode.

2. To mobilize another 4,000 billion VND from the State budget sources to supplement the projects in communication, water conservancy, public health, education, the supply of clean water to the mountainous areas and the deep-lying and remote regions; supplement the program of job creation, check the free migration and promote social and economic development in the poor border communes among the 1,000 poor communes which have not yet received investment.

The above capital shall be allocated first to the projects which need to be accelerated so that they can be put to use in 1999 and in the year 2000; at the same time to allocate enough matching fund for the projects financed by ODA, for those projects which need to be completed urgently in communication, water conservancy, health and education and the projects which have filled all the procedures and need to start construction but had no capital at the beginning of the year.

3. To take measures for demand pull in the infrastructure construction in the rural areas.

a/ In July 1999 the Ministry of Agriculture and Rural Development shall preside over the drawing up and submission to the Government of the plan to harden the canals with the following method of capital mobilization: For the hardening of the inter-district and inter-communal canals, investment shall derive from the tax on use of agricultural land and the yearly water conservancy fees; any shortfall shall be made up by the loans from preferential credits and the State budget shall make up for the difference in interest rates; the hardening of inter-hamlet and inter-field canals shall be carried out by the contribution in labor of the population; the State shall provide assistance in construction materials. In the immediate future, the Ministry of Agriculture and Rural Development shall direct the good implementation in Thanh Hoa and Nghe An provinces then shall draw experiences before expanding it to other localities.

In July 1999, the Ministry of Finance shall guide the localities in the use of incomes from the taxes on agricultural land use, irrigation fees and other incomes to carry out the hardening of irrigation canals.

b/ In August 1999, the Ministry of Communications and Transport shall assume the main responsibility and coordinate with the Ministry of Agriculture and Rural Development in working out the plan of upgrading the road surface in rural areas and submitting it to the Government. This is to be performed by mobilizing the contributions of the population with the State budget providing part of the funding.

c/ The State shall earmark a preferential credit fund for the provincial and city budget for the building of hardened canals, upgrading the surface of roads and electrification of the countryside covered by the investment program of the budget in order to accelerate the implementation; the provincial/municipal budget shall repay for it within a number of years. The Ministry of Planning and Investment shall coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Communications and Transport, the Ministry of Industry, the Ministry of Finance and the State Bank to determine the demand in capital for lending in 1999 and shall submit it to the Prime Minister for decision.

4. To carry out support measures to consume products and increase the purchase power of the population.

a/ The ministries and branches should direct and guide the enterprises to carry out synchronized measures to raise the quality and lower the production cost of products, and adopt plans to lower the selling prices of a number of products, especially products still in large stock and essential products.

With regard to a number of goods still in large stocks like pit coal, cement, construction steel, they may be sold by installment to the consumers households. The State shall delay payment of debts for loans from the Bank and expand the term of tax payment corresponding with the value of the delayed payment goods. The State Bank and the Ministry of Finance shall guide the implementation of this mechanism in July 1999.

In July 1999 the Prime Minister shall promulgate the mechanism of buying and selling goods by installments aimed at stimulating the consumption of a number of home-made goods.

b/ The ministries and localities shall direct the good implementation of the consumption of agricultural products for the farmers, of which the important measure is to promote the search for outlet, and encourage all economic sectors to take part in export.

c/ To broaden the model of link- up between the establishments processing and those producing raw materials according to long-term economic contracts. The processing establishments shall create conditions such as advancing capital, materials, strains, and technical assistance to the establishments producing raw materials. The farm products which do not go through processing may be bought directly to help the farmers sell all their merchandises. The Ministry of Agriculture and Rural Development shall direct this work.

II. MEASURES TO ENCOURAGE EXPORT

1. In July 1999 the Ministry of Finance shall work out the plan and submit to the Prime Minister for decision to found the Export Support Fund in order to assist and encourage the exportation of farm products. The source to found the Fund shall partly come from the difference between the prices of exported and imported goods, from the charge on the granting of export and import quotas, and the charge on the issue of certificates of origin of exports (C/O). In the immediate future, all the remaining fund of the Price Stabilization Fund shall be converted into start-up capital of the Export Support Fund.

2. The Ministry of Trade shall conduct negotiations with Russia, Iraq, Iran... to increase the volume of exports of farm products such as rubber, tea, meat, fruits and vegetables... according to the mode of bartering or sale on delayed payment. The State shall adopt policies to provide support for the export of farm products into these markets.

3. The Ministry of Trade shall closely guide the export and import enterprises in the process of negotiations with the goods owners or partners and should combine the import of machinery and equipment with the export of our goods and limit the trade deficit.

4. The Ministry of Finance shall study and submit to the Prime Minister in August 1999 the regime of paying commissions in transaction in order to promote export.

III. FINANCIAL AND MONETARY MEASURES

1. In July 1999 the Ministry of Finance shall study and submit to the Government the plan to amend a number of regulations on value added tax aimed at removing the hindrances to the enterprises, revise the minimum price index for the calculation of appropriate import and export tax rates, revise the mechanism of tax reimbursement and closely direct the implementation in order to create favorable conditions for the enterprises to promote export.

2. The Ministry of Finance shall coordinate with other ministries and the localities in concentrating guidance on the tax administration and customs service so that they can closely monitor the production and business activities in order to make correct and adequate collection of the arising incomes as prescribed by law; increase inspection and supervision in order to avoid tax deficient collection, arrears and evasion; closely manage budget expenditures, inspect and guide the practice of thrift in spending and in the use of reserve budget sources for emergency tasks as prescribed.

3. The State Bank should urgently complete the documents guiding the implementation of the Law on Vietnam State Bank and the Law on Credit Institutions.

In July 1999 the project to abolish the ceiling interest rate and the change to administering according to the basic interest rate in conformity with the Vietnam State Bank Law shall be submitted to the Prime Minister.

To continue completing the lending mechanism, to raise the capacity of evaluation and the responsibility of the credit organizations; to direct the commercial banks to get closer to the grassroots, to monitor the situation of production and business and the need in capital of the borrowers, to get enough capital for lending and meet in time the need of production and business on the basis of ensuring the efficiency of the loans.

To closely monitor the evolution of the market in the country and abroad in order to flexibly handle the exchange rates and ensure the encouragement to export and control of imports. To increase transactions with overseas Vietnamese through the banks and increase the foreign currency reserve.

IV. MEASURES FOR STABILIZATION OF THE ENVIRONMENT FOR INVESTMENT

IN PRODUCTION AND BUSINESS AND TO CONTINUE STREAMLINING THE STATE ENTERPRISES

1. The Ministry of Planning and Investment shall urgently deploy the guidance for the implementation of the Enterprise Law in order to create a steady and equal environment for business among all the forms of enterprise.

2. The General Land Administration shall coordinate with the provinces and cities in guiding the implementation of measures to promote the completion of the issue of agricultural, forest and rural land use right certificates according to Directive No. 18/1999/CT-TTg of July 1, 1999 of the Prime Minister.

3. The ministries, branches and localities should continue directing the carrying out of the plan of equitization and to assign, sell, allocate and hire State enterprises. To urgently issue the Decree of the Government on the assignment, sale, allocation and hire of State enterprises; to set up the equitization promotion fund and at the same time to study to readjust the mechanism of determining the value of the equitized enterprises, to abolish the decision to control the rate of buying shares. The Ministry of Finance shall study and submit to the Prime Minister the plan to restructure the debts of the enterprises undergoing equitization and conduct the sale, assignment, allocation and hire of enterprises according to the direction: the debts to the budget which are judged unrecoverable shall be allowed to be written off; the unrecoverable debts to the bank shall be allowed to be suspended or written off along with measures of financial handling with the bank.

4. In August 1999 the Ministry of Planning and Investment shall submit the experimental plan of selling the capital of the State in the joint ventures with foreign partners to domestic investors in order to increase the mobilization of capital in the country and help create funding sources for the State budget, and resell the stocks of the State in the State enterprises which have been equitized and in which State capital is not necessary; to coordinate with the Ministry of Finance and the related ministries and branches in guiding the implementation of the Decision of the Prime Minister concerning the sale of stocks to foreign investors aimed at mobilizing capital and technologies, raising the efficiency of production and business, and expanding the investment market for development of the enterprises.

V. TO CONCENTRATE GUIDANCE ON THE HUNGER ERADICATION AND POVERTY ALLEVIATION AND AIDING THE COMMUNES WITH GREAT DIFFICULTIES

1. The concerned ministries and branches and the provinces and cities shall closely guide and take urgent steps in deploying the national program on eradication of hunger and alleviation of poverty. The provinces and cities should urgently help the communes with exceptional difficulties work out their projects and speedily complete the necessary procedures for the disbursement of this fund; at the same time advance fund for these communes to deploy the approved projects and works; enhance the inspection and supervision in order to ensure that the fund reach the population, to combat capital losses and waste.

To carry out the regime of periodically reporting each month on the implementation of this Program in order to guide in time and take measures to remove difficulties and hindrances in the process of implementation.

2. The Commission for Ethnic Minorities and Mountain Regions shall coordinate with the Ministry of Agriculture and Rural Development and the localities in working out measures to prevent free migration and concentrate on stabilizing the life of the population in the highlands and the poor border communes. To build models of combined agriculture and forestry on steep lands and guide the transfer of technology to each household aimed at checking migration, migrant farming and habitation and indiscriminate felling of forests for hilly cultivation or destroying forests for the planting of industrial trees.

3. The Ministry of Health shall coordinate with the National Commission for Population and Family Planning to carry out the program of developing grassroots health care in the poor regions and communes; coordinate with the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance in working out the plan to solve difficulties in medical insurance for 4 million poor people. The Ministry of Education and Training shall carry out the educational program in the poor regions, consolidate and build schools and classes to make education accessible to more children of ethnic minorities and poor people, carry out the regime of exemption of school fees and preferential policies toward children of poor families.

VI. IN THE SOCIAL DOMAIN

1. To take measures to fight and prevent drug addiction among the youth. The Ministry of Education and Training shall coordinate with the Ministry of Public Security and the local authorities at various levels, especially in the major cities, to continue carrying out the plan of cleaning the environment and to prevent and fight against drug addiction among pupils and students, to check in time, repulse and eventually to basically eradicate drug addiction among pupils and students.

2. In order to reduce traffic accidents, it is necessary to increase popularization and education of the sense of observing traffic rules, and at the same time to continue guiding the implementation of Decree No. 36/CP of the Government and take measures to inspect and severely punish the violations of traffic rules.

3. To continue guiding the implementation of policies in the domains of public health, education, training, science, technology, culture, physical culture, sports, national defense and security according to the set tasks and programs.

4. The Ministry of Finance shall coordinate with the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Planning and Investment in examining and carrying out the policy of granting lump-sum allowances in the latter half of 1999 to the beneficiaries of social welfare.

VII. ON GUIDANCE AND ADMINISTERING

1. The ministries, branches and localities should work out their programs and plans and take concrete measures to continue to vigorously and effectively carry out the program of action of the Government aimed at implementing the Resolution of the Central Committee of the Party at its 6th Plenum (1st session), the Resolution of the Political Bureau on developing agriculture and the countryside, and the Resolution of the National Assembly on the tasks in 1999, the working program of the Government in 1999, and the measures set out in this Resolution.

2. To heighten the sense of responsibility and bring into play the role of the cabinet members in the realization of the task of monitoring and helping the localities; the cabinet members should work out plans to coordinate with the presidents of the provinces and cities in order to direct the good carrying out of the work. After this session, the cabinet members should discuss concrete matters with the provinces and cities which they are assigned to monitor in order to inform them of the contents and the measures for the carrying out of this Resolution.

3. To increase the information, reporting and inspection of the implementation of the Resolutions of the Government and the Decisions of the Prime Minister.

a/ The ministries, branches and localities should seriously carry out the regime of information and reporting according to the working statute of the Government, create an untrammeled channel to detect in time the hindrances and difficulties and take the initiative in solving within their powers and propose concrete measures to quickly remove the difficulties... and help the Prime Minister handle and administer in time.

The ministers and the heads of branches and localities should personally guide the inspection and promote the carrying out of the resolutions of the Government and the Decisions of the Prime Minister.

b/ The Office of the Government shall regularly monitor and urge the ministries, branches and localities in carrying out the working program, the Resolution of the Government and the decision of the Prime Minister, focussing especially on a number of key domains of work, and report in time and propose to the Prime Minister measures to correct and handle deviations and mistakes.

c/ The ministries and branches should regularly inquire into and report the opinions of the enterprises and investors with regard to the issue and organization of implementation and the feasibilities of the State�s mechanisms and policies.

d/ Every month, the Prime Minister and Deputy Prime Ministers shall work with the ministries and branches in the domains they are assigned to monitor in order to review and evaluate the situation in the implementation in the month and propose measures to continue directing the implementation and to integrate them into a common report to be prepared by the Minister of Planning and Investment.

4. To step up the administrative reforms and renew the mode and raise the quality of the building of the institutions, organizational apparatus and the personnel work.

a/ The ministers and heads of the agencies should concentrate their guidance on the drafting of documents they are assigned to, and to coordinate with the specialized agencies to act in accordance with the process of drafting and evaluation as prescribed by the Law on Promulgation of Legal Documents and Decree No. 101/CP of September 23, 1997; to overcome the situation in which the enactment of documents issued by the higher level has to wait for documents of the lower level.

b/ To overcome the practice of passing the buck to the higher level and to the Prime Minister. The ministers and branches should revise and inspect their work in order to classify what belong to the handling competence of the ministries and branches, resolutely hand back those affairs that belong to the competence of the lower level, at the same time should not submit to the Prime Minister those affairs which come under their competence.

c/ The ministries, branches and localities shall continue to revise and rearrange the contingents of their managerial cadres, especially those for the enactment of the policies and those for the management of enterprises, resolutely replace those cadres with faults, those who lack in quality and capacity with those capable and ethically good in order to raise the efficiency of the activities of the managerial apparatus and the efficiency of production and business of the State enterprises. To redress the method and style of work, to enhance coordination in handling work.

5. To continue the review according to plans 01 and 03 of the Political Bureau. The ministers, the heads of the ministerial-level agencies and agencies attached to the Government, the local leaders and the Caucus Commissions and Party Committees shall have to organize the review of work at their ministries and agencies aimed at achieving the targets and demands already laid down by the Resolution of the 6th plenum of the Party Central Committee (2nd session).

On behalf of the Government

Prime Minister

PHAN VAN KHAI